Bloomberg - Evening Briefing - ‘Crisis of confidence’

Bloomberg Evening Briefing

Silicon Valley Bank’s lack of a chief risk officer for much of last year is being examined by the Federal Reserve as part of its probe of the bank’s failure. SVB revealed in a 2023 proxy statement that Chief Risk Officer Laura Izurieta left the company in October but stopped performing the role in April. The company said Kim Olson took over the job in December. Olson is based in New York, across the country from most of the rest of SVB’s top brass. The San Francisco Fed was the chief regulator for SVB before it fell into Federal Deposit Insurance Corp. receivership on Friday in the biggest bank failure in more than a decade. The Fed has said that it will also conduct an internal investigation of its own oversight, and release the results on May 1. 

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By now most people know why SVB tanked. But why Signature Bank? It turns out the answer is simple: The favorite of law firms and crypto was seized by the government Sunday after regulators lost faith in management. “The bank failed to provide reliable and consistent data, creating a significant crisis of confidence in the bank’s leadership,” New York’s Department of Financial Services said. The collapse—the third-largest bank failure in US history—followed a surge in customer withdrawals on Friday that is said to total about 20% of the company’s deposits.

Moody’s Investors Service placed First Republic Bank and five other US lenders on review for downgrade, the latest sign of concern over the health of regional financial firms following the failure of SVB. Western Alliance Bancorp., Intrust Financial Corp., UMB Financial Corp., Zions Bancorp. and Comerica Inc. were the other lenders put on review.

A First Republic Bank branch in Santa Monica, California Photographer: Lauren Justice/Bloomberg

Three banks collapse in quick succession. The government rumbles in to stanch the bleeding. But depositors are still worried, fearful for their nest eggs. Guess who comes out the winner?

Regional bank leaders are snapping up shares of their companies’ stocks, taking advantage of a selloff fueled by the fallout from SVB. More than 100 executives at lenders across the US, including PacWest Bancorp, Metropolitan Bank Holding and CVB Financial, spent at least $13.9 million combined boosting their stakes, according to data compiled by Bloomberg. 

Credit Suisse Group said it found “material weaknesses” in its reporting and control procedures for the past two years, after questions from US regulators last week. The Zurich-based bank, which has seen turbulent times of late, said Tuesday it will take steps to fix ineffective checks on the process it follows to pull together its financial reports. 

Underlying US consumer prices rose in February by the most in five months, forcing a tough choice for Federal Reserve officials weighing still-rapid inflation against the ongoing banking turmoil in their next interest-rate decision. Just before the crisis came to fruition last week, Chair Jerome Powell had opened the door to re-accelerating the pace of rate hikes, but many economists now say the central bank will either stick with a smaller increase or pause entirely when it meets next week. One shop even says a rate cut could be in store.

Facebook-parent Meta Platforms plans to fire another 10,000 of its employees, bring to 21,000 the number of people the company has terminated in the past six months. It will also eliminate about 5,000 additional open roles. Meta has been marketing 2023 as a “year of efficiency.”

Bloomberg continues to track the global coronavirus pandemic. Click here for daily updates.

 What you’ll need to know tomorrow

‘Positive Calm’ Amid Rout at NYC Finance Gala

Thank the US government for making the Museum of American Finance gathering of Wall Street’s players a normal social evening. Rather than stress-schmoozing in the throes of bank runs and failures, and a rout of financial stocks, the 525 guests gathered Monday night at Manhattan’s Cipriani 42nd Street grasped their bellinis with a sense of relief that regulators had pledged SVB deposits exceeding $250,000 would be safe. 

Virtu Financial co-founder Vincent Viola, center, with wife Teresa and sons, Michael and John. Photographer: Amanda Gordon/Bloomberg

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Deregulation contagion

Monday, March 13, 2023

Bloomberg Evening Briefing View in browser Bloomberg President Joe Biden sought on Monday to reassure markets and consumers that any collateral damage from the implosion of Silicon Valley Bank would be

Fear of contagion

Saturday, March 11, 2023

Bloomberg Weekend Reading View in browser Bloomberg If you had never heard of Silicon Valley Bank before this week, you likely have by now. SVB was home to cash belonging to half of all venture-backed

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Friday, March 10, 2023

Bloomberg Evening Briefing View in browser Bloomberg Three years ago tomorrow, the World Health Organization declared the spread of what was then called the novel coronavirus to be a pandemic. Some

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Thursday, March 9, 2023

Bloomberg Evening Briefing View in browser Bloomberg The see-saw continues. The first half of the week brought warnings of resurgent inflation and bigger rate hikes along with fresh reasons to support

Affirmation for the Fed

Wednesday, March 8, 2023

Bloomberg Evening Briefing View in browser Bloomberg As if on cue, Jerome Powell's warning about inflation on Tuesday received the imprimatur of the job market on Wednesday. New numbers showed

Inflation is the enemy

Wednesday, March 22, 2023

Bloomberg Evening Briefing View in browser Bloomberg The US Federal Reserve raised interest rates by a quarter percentage point and indicated there may be more hikes to come. In doing so, the Fed

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Wednesday, March 22, 2023

The Fed struck a compromise | Inflation dashed Brits' hopes | TOGETHER WITH Hi Reader, here's what you need to know for March 23rd in 3:07 minutes. ⏱ Time slips by pretty easily – so you might

Issue #184: I can stop freaking out — my money is totally safe in the bank

Wednesday, March 22, 2023

plus the Squirrel Lady + Hugh Jackman's cinnamon rolls ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Great news for your next vacation

Wednesday, March 22, 2023

Plus: Bill Gates' AI predictions, and using ChatGPT to start a business. View in browser Subscribe March 22, 2023 Hello, Insiders. This is Jennifer H. Cunningham, the editor in chief of

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Wednesday, March 22, 2023

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Hi there! Dan DeFrancesco in NYC, and these stories of wild sex accidents from an ER doctor who treated them

❣️ JPMorgan’s bleeding heart

Tuesday, March 21, 2023

JPMorgan rushed to rescue First Republic | Amazon's still slimming down | TOGETHER WITH Hi Reader, here's what you need to know for March 22nd in 3:03 minutes. 🔮 ChatGPT's smart, but it can

Roaring back

Tuesday, March 21, 2023

Bloomberg Evening Briefing View in browser Bloomberg Beleaguered First Republic Bank is refusing to be the fifth victim of the banking crisis, surging by a record and leading a rally in US lenders

5 things to Know about Social Security Even if You’re Not Collecting

Tuesday, March 21, 2023

Also: As Inflation Cools, Prices for These 5 Things Are Climbing ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

🤦🏼‍♀️ A Woke Bank Crash? (Smh.)

Tuesday, March 21, 2023

Plus, $100K jobs, five years of Ellevest Impact Portfolios, and how to protect your data. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Ex-CIA officials say Bush ‘lied’

Tuesday, March 21, 2023

Plus: Gen Z real estate, and Credit Suisse winners and losers. View in browser Subscribe March 21, 2023 Hello, Insiders. This is Matt Turner, Insider's editor in chief of business. Amid all the big